Capital Group Municipal Income ETF Experiences Surge in Short Interest

The Capital Group Municipal Income ETF (NYSEARCA: CGMU) has witnessed a remarkable increase in short interest, reflecting heightened investor activity. As of February 27, 2023, the short interest reached a total of 257,286 shares, marking an impressive rise of 82.3% from the previous total of 141,153 shares recorded on February 12. This surge indicates a growing sentiment among investors, with 0.1% of the company’s stock currently sold short.

With an average trading volume of 1,021,587 shares, the days-to-cover ratio stands at a brief 0.3 days. This metric suggests that it would take less than a day for short sellers to cover their positions based on the average volume traded.

Institutional Investors Adjust Positions

Several hedge funds and institutional investors have made notable adjustments to their positions in the Capital Group Municipal Income ETF. Among these, Advisortrust Partners LLC established a new stake in the ETF during the fourth quarter, valued at approximately $257,000. Additionally, Royal Harbor Partners LLC increased its holdings by 4.3%, now owning 443,171 shares worth $12,134,000 after acquiring an additional 18,465 shares.

Blue Chip Partners LLC also expanded its stake by 4.5%, holding 1,635,685 shares valued at $44,785,000 following the acquisition of 70,638 shares in the last quarter. Beacon Pointe Advisors LLC significantly increased its position by 31.9%, now owning 745,742 shares valued at $20,418,000 after purchasing an additional 180,522 shares. NewEdge Advisors LLC raised its position by 0.6%, now holding 180,042 shares worth $4,930,000 after acquiring an additional 1,083 shares.

Current Trading Status and Dividend Increase

As of the latest trading session, shares of the Capital Group Municipal Income ETF opened at $27.52. The ETF’s fifty-day simple moving average is $27.66, while its 200-day simple moving average stands at $27.44. The ETF has seen fluctuations within the past year, with a low of $25.83 and a high of $27.93.

The Capital Group Municipal Income ETF primarily invests in a diversified portfolio of US municipal bonds, which are exempt from regular federal income tax. Launched on October 25, 2022, the ETF is actively managed by Capital Group, catering to investors seeking fixed income opportunities in the municipal bond market.

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